What is the project average accounting return

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You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.6 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,914,300, $1,967,600, $1,936,000, and $1,389,500 over these four years, what is the project’s average accounting return (AAR)?

Reference no: EM131055587

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